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lbvjy [14]
3 years ago
14

During 2022, Sheridan Company entered into the following transactions.

Business
1 answer:
malfutka [58]3 years ago
4 0

Answer with its Explanation:

Transaction 1: The purchase of equipment is increase in the fixed assets and as the amount paid is in cash, the decrease in cash asset will also be with the same amount. This means the net effect on assets will be zero.

Accounting Equation is given as under:

Fixed Assets + Current Asset  = Equity + Liability

Equipment 318,770   -  Cash $318,770  = Zero Net Effect

Transaction 2: The increase in the equity will increase the current asset as well here, which means:

Fixed Assets + Current Asset  = Equity + Liability

Current Assets + $139,050   =  Issued common stock + $139,050

Transaction 3: The purchase of inventory on account means that the current asset would be increased and the payables will increase with the same amount. The effect on the accounting equation is given as under:

Fixed Assets + Current Asset  = Equity + Liability

Current Asset + $70,94   =   Current liabilities + $70,940

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On June 30, 2018, the High Five Surfboard Company had outstanding accounts receivable of $600,000. On July 1, 2018, the company
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Answer:

The Journal entry is as follows:

On July 1,

Cash A/c                                  Dr. $439,200

Finance charge Expense A/c Dr. $10,800

To Financing arrangement A/c                       $450,000

(To record the amount of borrowings)

Workings:

Finance charge expense = ($600,000 × 1.8%)

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So, cash account = $450,000 - $10,800

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3 years ago
“The needs of a society conflict with the goals of the financial services industry’s desire to make a profit.” Do you agree or d
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Answer:

I do not agree that "the needs of a society conflict with the goals of the financial services industry's desire to make a profit", but on the contrary, I consider that the economic objectives of the financial system contribute to the well-being of the individuals that make up society, with which they satisfy the needs of this in an indirect way.

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3 years ago
1. An example of an unsecured debt is a(n) _____. (1 point)
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1) A student loan is an example of an unsecured debt. A secured debt is when a person has something as collateral like their automobile. 

2) Unsecured debts usually have higher interest rates when compared to something with a secured debt. 
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3 years ago
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William Brown, the CFO of Oriole Automotive, Inc., is putting together this year's financial statements. He has gathered the fol
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Answer:

$169,521

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The computation of long-term debt is shown below:-

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= $23,015 + $213,100 + $78,656 + $710,100 + $141,258 + $11,223

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